Induction in electrostatics refers to the process where a charged object influences the charge distribution in a nearby neutral object without direct contact. For example, bringing a negatively charged rod near a neutral metal sphere causes electrons in the sphere to move away, resulting in a positively charged side and a negatively charged side. This phenomenon can be observed when a charged balloon is brought close to small pieces of paper, causing them to be attracted due to induced charges. Inductive reasoning and proof by induction are unrelated concepts and do not apply to electrostatics. Understanding electrical induction is crucial for grasping how charged objects interact in various applications.